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Levi Strauss & Co. raises profit guidance despite DTC sales slump
Levi Strauss & Co. reported third-quarter fiscal 2026 results characterized by rising profitability alongside mixed sales performance. Net revenue grew 4% to $1.61 billion, while net income reached $169 million. The company raised its full-year adjusted earnings per share guidance to a range of $1.54 to $1.56, bolstered by tariff refunds that contributed significantly to margins. However, the company lowered its annual revenue growth forecast to 7%, the lower end of its previous guidance.
Performance varied significantly by channel. Wholesale revenue rose 6%, supported by strength in Europe and Asia. Conversely, the Direct-to-Consumer (DTC) segment saw slower growth of 2%, with U.S. sales declining by 1%. CEO Michelle Gass attributed the DTC challenges to a back-to-school marketing campaign that failed to drive expected traffic and a mismatch in product trends, specifically noting that a heavy focus on baggy silhouettes missed the rising demand for low-rise fits.
To address these issues, the company is leveraging data infrastructure from Google Cloud to pivot inventory toward high-demand styles. Additionally, Levi Strauss announced the appointment of John Vandemore as new CFO, effective November 1, and plans a $100 million share buyback program.
Entities
Beyond Yoga · Google Cloud · John Vandemore · Levi Strauss & Co. · Michelle Gass · Wells Fargo & Company
Claims
What the coverage asserts, and how many sources carry each claim.
- [○ 1 SOURCE] Revenue in the United States declined by 1% during the quarter. blockonomi.com
- [● 2 SOURCES] The company announced plans for a $100 million share buyback program. blockonomi.com · finchannel.com
- [● 2 SOURCES] Third-quarter net revenue reached $1.61 billion, a 4% increase from the previous year. blockonomi.com · finchannel.com
- [○ 1 SOURCE] Tariff refunds provided a significant boost to profitability, contributing 16 cents per share. finchannel.com
- [● 3 SOURCES] Direct-to-consumer (DTC) revenue grew by 2% during the third quarter. blockonomi.com · finchannel.com · wwd.com
- [● 2 SOURCES] The company raised its full-year adjusted diluted earnings guidance to a range of $1.54 to $1.56 per share. blockonomi.com · finchannel.com
- [○ 1 SOURCE] CEO Michelle Gass attributed weak U.S. demand to a back-to-school marketing campaign that failed to meet expectations. wwd.com
- [○ 1 SOURCE] John Vandemore will join the company as CFO on November 1, succeeding Harmit Singh. finchannel.com